This research mainly explores factors that may contribute to national performance on science and technology research and development (R&D). Th e 17-year panel data regression analysis on 35 OECD countries and Russia provides evidence to potential causal relationships between value-added of industry and several investment variables. As a proxy variable for research and development performance, value-added of industry indicates a statistically signifi cant positive relationship with business-performed expenditure of government-funding on R&D. It indicates negative relationships with government-performed expenditure of government-funding on R&D and regulatory burdens. Th e results suggest that national R&D policy should guarantee less regulatory burden and more autonomy of government-funded R&D projects.